Evergy, Inc. (EVRG) is a prominent electric utility holding company based in Kansas City, Missouri. Formed through the merger of Kansas City Power & Light (KCP&L) and Westar Energy in 2018, Evergy focuses on delivering reliable, affordable, and sustainable energy solutions. The company operates a diverse mix of power generation assets, including coal, natural gas, and renewable energy sources such as wind and solar, and is valued at $14.6 billion by market cap.
The utility company is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Thursday, March 6.
Ahead of the event, analysts expect EVRG to report a profit of $0.37 per share on a diluted basis, up 37% from $0.27 per share in the year-ago quarter. However, the company missed the consensus estimates in three of the last four quarters while beating the forecast on another occasion.
For FY2024, analysts expect EVRG to report EPS of $3.84, up 8.5% from $3.54 in fiscal 2023. Its EPS is expected to rise 5% year over year to $4.03 in fiscal 2025.
EVRG shares have returned 29.1% over the past year, slightly surpassing the S&P 500’s ($SPX) 22.9% gains and the Utilities Select Sector SPDR Fund’s (XLU) 26.9% gains over the same time frame.
Evergy’s solid price performance over the past year stems from stable electricity demand in its service areas, supported by regulatory frameworks that enable consistent revenue growth. Its investments in renewable energy, including wind and solar projects, position it well for the growing demand for clean energy. Additionally, Evergy's strategic capital investments in new infrastructure, such as natural gas plants, ensure long-term growth. The company’s consistent dividend increases further appeal to income-focused investors, contributing to its market outperformance.
Following its impressive Q3 earnings release on Nov. 7, Evergy shares rose 1.8% in the following trading session. The company reported an 8.4% year-over-year increase in revenue, totaling $1.8 billion, while its earnings of $2.02 per share grew 7.4% compared to the previous year, beating the consensus estimate of $1.95. Evergy reaffirmed its non-GAAP EPS guidance for 2024, ranging from $3.73 to $3.93, and set an adjusted EPS forecast for fiscal 2025 between $3.92 and $4.12.
Analysts’ consensus opinion on EVRG stock is cautiously upbeat, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, nine advise a “Strong Buy” rating, and four give a “Hold.” EVRG’s average analyst price target is $67.35, indicating a potential upside of 4.9% from the current levels.
